<p>How to be declared independent
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Are You an Independent Student?</p>
<p>The independent student definition created by Congress is strict and is considered controversial by many students and parents. However, Federal regulations related to the classification of a student's dependency status for financial aid must be followed by school financial aid administrators in determining one's eligibility for federal and state aid funds. Whether a student lives in his own home or apartment and/or claims himself as an exemption on his federal income tax return has nothing to do with a student being considered independent for financial aid purposes. </p>
<p>The only way a student can become independent for financial aid purposes (which means the custodial parents' income and asset information are not required on the FAFSA) is if the student meets at least one of the following guidelines:</p>
<ol>
<li><p>For the 2007-08 school year (yellow FAFSA), the student must be born before 1-1-1984; or for the 2008-09 school year (orange FAFSA), the student must be born before 1-1-1985);</p></li>
<li><p>The student must be married; or</p></li>
<li><p>The student must have a child or other dependents who receive more than half their support from the student; or</p></li>
<li><p>The student must be enrolled as a graduate student (master's, doctoral) or professional student (medicine, dentistry, or law); or</p></li>
<li><p>The student must be a qualified veteran of the U.S. military or be active duty in the U.S. military; or</p></li>
<li><p>The student must be an orphan (parents deceased) or ward of the court or was a ward of the court until age 18; or</p></li>
<li><p>The student must have special and unusual circumstances which can be documented to his or her college financial aid administrators (i.e., abuse in the family, alcoholism, etc.). This exception is rare and only an experienced financial aid administrator at your college can make this "dependency override" on the FAFSA application.</p></li>
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<p>If you are considered a dependent student and do not provide your parents information, your FAFSA will be rejected. Even though you may not be considered an independent student for financial aid purposes, you may still obtain a low-interest and attractive student loan ($2,625 to $18,500 per year, depending on your grade level in college), regardless of your parents income, as long as you are a U.S. citizen or an eligible non-citizen with an alien registration number (permanent resident or "green card" number), attend a college that participates in the federal aid programs, have not defaulted on a previous federal educational loan, enroll at least half-time in a degree or certificate program, and have not been convicted of a federal drug offense. </p>
<p>The Federal Stafford/Direct Loan requires no payment on the principal until six months after the student leaves school. If you demonstrate financial need, the government pays the interest for you while in school (this is called a "subsidized" Stafford/Direct Loan). Interest rates on new educational loans for the 2005-06 year are 4.7% while in school for unsubsidized Stafford/Direct Loans and 5.3% while in repayment, grace, or forbearance periods.
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